Attack on rip-off credit cards

PLANS will be unveiled today to take on greedy banks profiteering from 'rip-off' credit cards.

New regulations are aimed at restricting misleading advertising and sharp practices in the terms and conditions of such cards.

In a bid to tackle unprecedented levels of household debt resulting from the consumer lending boom, ministers want to bring into the open the true cost of borrowing on credit cards.

Annual percentage rates will be standardised as one of the biggest overhauls. Often cards offer low APRs but levy high charges for late payments and for drawing cash from machines. Other tricks include socalled '0%' or low interest deals on balance transfers.

The moves are part of a shake-up of the 30-year-old Consumer Credit Act which will also tackle loan sharks and loans with extortionate interest rates.

They come as outstanding credit card and personal loan balances hit £168bn in October and on the eve of the annual Christmas spending spree when millions are likely to slip further into unaffordable debt.